Maybe this has happened to you: You loan your car out to a friend or family member. You think everything will be fine but get a dreaded phone call. Your friend has crashed your car. Now what?
What happens next? Who is responsible for the damage? Will this affect your insurance rates? Today, we’re answering your most urgent questions about loaning your car to someone else.
When Can Someone Else Drive My Car?
Someone else can usually drive your car when you give them permission to do so. In many cases, your auto insurance will still provide coverage in case of an accident. However, this depends on your policy and the circumstances of the crash.
Because a vehicle is one of your biggest investments, it’s important to understand when insurance coverage applies and when it may not. Below, we explain when a borrowed car is covered and when it may not be.
Can I Loan My Car to a Friend or Family Member?
Yes, you can typically loan your vehicle to a friend or family member if they have your permission to drive it. However, before handing over your keys, it’s best to check with your insurance provider and review Indiana auto insurance laws. Depending on your policy, there may be restrictions on who can drive your car.
Regular drivers or household members may need to be added to your policy to ensure that they are properly covered.
Who Pays if My Friend Crashes My Car?
It depends on who caused the collision. Because Indiana is an at-fault state, the at-fault driver’s insurance company is generally responsible for paying damages.
But what if your friend or family member is at fault? When you give someone permission to drive your car, your insurance will typically cover the damages. Insurance companies refer to this as permissive use.
Can a Nanny or Babysitter Drive My Car?
Yes, a nanny or babysitter can usually drive your car with your permission. However, if they will be using your vehicle regularly to take your child to school, activities, or appointments, you should contact your insurance company.
Depending on your policy, your insurer may require you to add them as a listed driver to ensure they are properly covered.
Whose Insurance Covers an Accident If Someone Else Drives My Car?
In most cases, auto insurance follows the vehicle rather than the driver. This means your policy will likely still apply if someone borrowing your car causes an accident while driving with your permission.
However, coverage will depend on the details of your policy and the circumstances of the crash. Even if your insurance covers the damages, you may still be responsible for paying your deductible.
Do I Need to Add Temporary Drivers to My Car Insurance?
If someone only drives your car occasionally, you typically do not need to add them to your insurance policy. As long as they have permission to use your vehicle, they will likely be covered in case of an accident.
However, if you expect someone to drive your car regularly, your insurance company may require you to add them to your policy. This is especially important if the driver lives in your household, since many insurers require household members to be listed on the policy to ensure coverage. You should contact your provider for more information.
Can My Teen Drive My Car?
Yes, your teenager can drive your car if they are properly insured. Because teen drivers usually live at home and drive the vehicle regularly, they must typically be added to your insurance policy.
Unfortunately, insurance costs are often the highest for teenagers. Their inexperience and higher crash rates make them more likely to file a claim than other drivers.
Teen drivers are:
- Four times more likely to be involved in a fatal car accident
- Three times more likely to be involved in a car accident in general, compared to drivers 20 and older
Contact your insurer to review your coverage options and ensure that your teen is properly protected.
What if Someone Gets a Speeding Ticket While Driving My Car?
Unlike car insurance, which follows the vehicle in the event of a crash, a traffic citation follows the driver. That means if someone is pulled over for speeding while driving your car, they will be responsible for the citation, and their personal auto insurance costs may increase.
What Are Excluded Drivers—And When Should I Exclude Someone?
An excluded driver is someone who is specifically excluded from your auto insurance policy. If a person of legal driving age lives in your household and you don’t want them driving your car, you can ask your insurance company to designate them as an excluded driver.
This option may make sense if someone in your household has a poor driving record or is an unsafe driver. Excluding that person from your policy could help prevent your insurance rates from increasing.
There is one caveat, though: This person shouldn’t drive your car under any circumstances. If they cause a crash while driving your vehicle, your insurance company may deny coverage, and the excluded driver could be treated as uninsured. Depending on your policy, your insurer may also choose not to renew your plan.
Because every insurance policy is different, it’s important to confirm the terms of your coverage with your insurance agent.
What Do I Do Before Loaning Out My Car?
Before loaning out your car, make sure you understand the potential risks and how your insurance policy applies. Even if your insurance covers damages caused by another driver, an accident can still create financial and legal complications.
Protect yourself by asking the following questions:
- Is this person a safe driver?
- Do I trust them to behave responsibly behind the wheel?
- Will they be able to cover the costs associated with an accident (such as deductibles)?
Thinking through these questions can help you make a more informed decision before loaning out your vehicle.
When Should I Talk to My Insurance Provider?
You should speak with your insurance provider anytime you have questions about who is covered under your policy or when coverage applies. It’s especially important to check with your insurer before allowing someone to drive your car regularly.
Understanding your policy ahead of time can help you avoid unexpected out-of-pocket costs or coverage disputes after an accident.
Contact Wilson Kehoe Winingham Injury Lawyers for a Free Initial Consultation
If you’ve been injured or are facing a complex legal matter, reach out to Wilson Kehoe Winingham Injury Lawyers to schedule a free consultation. Our team serves clients across Indianapolis and throughout Indiana, and we’re ready to pursue the justice and full compensation you deserve.